Crypto News: James Wynn’s Near Wipe Out Amid Scam Warnings, Accusations

James Wynn lost nearly all his profits on Hyperliquid as per recent crypto news update from Lookonchain.

This came close on the heels of James Wynn’s warnings. He alerted people that a crypto tokens were fraudulently launched using his name. On May 28, 2025, Wynn took to his verified X account to send a message to his over 200K followers.

He further stated that bad actors created and promoted a fraudulent token called “wynning” on the Solana-based PumpSwap exchange. He described the token as a “heavily farmed coin.”

Wynn also warned that it is likely to become worthless, urging the public not to buy it. The crypto news update by James Wynn highlighted that the token saw $4.3 million in trading, its market cap being only $495,000.

In his view, this disproportion is typical of a farm project intended to lure buyers and raise money by adding false value.

He attributed the scam to a group he referred to as “the cabal,” accusing them of using his name to give the token false legitimacy and then executing what he claimed were rug pulls. Wynn also clarified that he supported only two meme coins, $MOONPIG and $PEPE.

Crypto News: The “Wynning” Token Denounced

James Wynn publicly disassociated himself from the token “wynning,” listing it as a scam coin unrelated to him. He explained in his post that these coins are being launched without his consent, with the intention of misleading investors.

At present, the token is available on Pump.fun platform, famous for its rapid token launches. The coin can be bought for $0.0004940. There is around $88,000 locked in liquidity, and its fully diluted value is $495,000.

This development is adding to concerns in the market that many meme coins depend heavily on celebrities for instant attention. Such coins often show sudden high volume. And it is followed by a sharp drop in liquidity, leaving retail investors open to risk.

Wynn Transfers PEPE Holdings Amid Active Trading

Along with the scam token warning, James Wynn recently traded away a substantial quantity of PEPE. Reports from Arkham Intelligence revealed that PEPE tokens worth over $4.41 million were deposited by Wynn to Binance. The deposits were in two batches – 240 billion and 203.73 billion PEPE tokens respectively.

The period spanned three hours. It lead to some guessing that Wynn might be moving funds to back his current Bitcoin long positions.

More so, the transfer comes during a period of heightened activity around PEPE whales. The coin has posted a 50% increase over the past month. Market analysts expect further upside based on current price patterns and trader sentiment.

Accusations Against Wynn Resurface in the Crypto Market

Shortly after Wynn issued his scam alert, blockchain investigator ZachXBT released a post questioning the trader’s track record. ZachXBT said that Wynn has done this kind of activity before with other low-cap coins.

He claimed that in the past, Wynn had been given crypto tokens. And then he made a profit with them and left the projects soon afterward.

Other allegations accuse Wynn of connections to Alameda Research, an Alameda-owned trading platform that was part of the FTX collapse.

FTX creditor activist Sunil Kavuri pointed out that Wynn’s wallet received 6,000 ETH from Alameda in 2020. This capital, according to Kavuri, may have served as seed funding for Wynn’s early trades and helped build his position in the crypto market.

These claims have revived doubts about Wynn’s past, even though he has now said he strongly opposes fraud.

There are still problems concerning the credibility of tokens and defense of investors in the crypto market. Through services like Pump.fun, it has become easy to issue tokens quickly, skipping important oversight and project evaluation. Because of this, scams are becoming more common, mainly in the meme coin market.

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